My Car Just Got Ripped Off. How Much is My Car Insurance Company Going to Cover?

There's nothing quite as unpleasant as walking out of the mall late at night to find the windows to your car smashed, the door pried open, the wires ripped out like someone tried to hot wire it but couldn't find the right YouTube video and, worst of all, a black, empty hole where your car stereo used to be. Car theft is something that intrinsically violates your personal space and your personal belongings. As traumatizing as being the victim of theft can be, however, it's not the end of the world. After all, your car insurance company is standing behind you every step of the way.

Aren't they?

Many people don't realize it ahead of time, but just having car insurance isn't enough to guarantee that you're going to be able to recoup all of your losses. Car insurance companies have a vested interest in staying in business for longer than a year or two, which means they need to take in more than they pay out in car insurance claims. They have to have a certain amount of discretion in what they cover and, when they do, how much they're willing to cover.

First and foremost, let's talk about what car insurance companies are willing to cover when it comes to theft. Most companies will cover damages to your car. If they broke a window, smashed a tire, ripped out some wires, messed with your engine, did major damage trying to outsmart your fuel switch-whatever the case, they're going to take care of it for you. If the manufacturer included it in the car, it's probably going to be covered by your car insurance company.

And, of course, if they manage to get away with the entire car they'll pay to replace it for you. But that's about as far as your coverage goes.

When you think about it, unless they're trying to make off with the entire vehicle to get to a chop shop what is it that car thieves are usually after? Electronics. Stereos, GPS, Bluetooth, CD players, speakers, cell phones, DVD players...the list is endless. Anything they can resell out on the market for a profit is pretty much considered to be fair game.

Unfortunately, since these aren't part of the car they probably aren't going to be covered by your car insurance. The good news is, while your car insurance probably isn't going to take care of it your homeowners insurance is standing by, just waiting to step into the gap. See, most home insurance companies essentially consider your car to be a mobile extension of your house. By default, that means what's inside is covered.

Of course, there are a couple of conditions. Insurance companies are really cracking down on fraud these days, which means they're extremely careful about what insurance claims they pay out. If you can't prove your car was broken into you're not going to be able to receive the compensation you deserve. Why? It was too easy. Nobody trusts anything that comes easy.

Filing insurance claims after your car's been ripped off is going to send your car insurance rates skyrocketing, so it definitely pays to stay two steps ahead of the enemy camp on this one. Make sure your doors are locked, always park in well lit areas and never turn your back on your car with the windows wide open. If thieves can't get inside your car, they can't rob you blind.

Remember, the best defense is always a good offense.